Gaizhuang - The Specialty-Equipment Market in China

About this product:

Thirteen SEMA-member companies recently traveled to Beijing, China, for
a firsthand look at the developing Chinese market for specialty
products—or, as referred to in Chinese, Gaizhuang.

In its infancy,
the Chinese market for performance and accessory products is not so
unlike the U.S. market of 40 or 50 years ago. On one hand, it is
brimming with opportunity as millions of consumers develop a growing
taste (and the necessary disposable income) for vehicle
personalization. But a closer look at the market reveals a sector
riddled with sporadic government crackdowns on car modifications (in
Shanghai in 2007 and most recently in Beijing); numerous performance
products still technically illegal; far-flung population centers only
partially served by the fragmented network of distributors; and the
presence of frequent intellectual-property violations. It’s essential
that companies take the necessary steps to minimize their potential IPR
vulnerability in China and worldwide. Yet, despite this, the delegation
overwhelmingly concluded that the largest mistake SEMA members could
make would be to underestimate the market and the potential it holds
for many SEMA members.